Self-employed workers get bonded through a managing general underwriter, bond agency, or property and casualty insurance agent, and they purchase insurance through an insurance agency, according to JW Surety Bonds. Obtaining a surety bond requires completing an application, which is sometimes available online and approved instantly. Other bond applications require underwriting before approval. Insurance policies require an application and have various underwriting requirements, notes Trusted Choice Independent Insurance Agents.Continue Reading
Bond applications can be denied if the applicant is viewed as high-risk, such as those with significantly poor credit histories, but high-risk applicants are often approved at higher rates, according to JW Surety Bonds. Clients often require a surety bond before hiring self-employed individuals. For example, governments typically require contractors to be bonded in order to work on construction projects. Bonds protect the individuals or entities that hire the bonded worker, and they protect the general public.
Common types of insurance coverage purchased by self-employed people include errors and omissions, bodily injury, property damage, product liability, liquor liability, disability and medical, explains Trusted Choice Independent Insurance Agents. An errors and omissions policy protects individuals who give professional advice. Contractors, drivers, and others who perform services carrying a risk of injury to themselves and others carry bodily injury insurance. Those who serve food or alcohol as part of their businesses carry product or liquor liability. All types of self-employed people carry medical insurance and disability insurance to protect themselves against potential loss of income due to injury or illness.Learn more about Insurance